Morning Commentary: Preferreds mixed as week begins; Global Indemnity’s $25-par notes free

By Stephanie N. Rotondo

Seattle, March 20 – The preferred stock market was starting the week off in mixed fashion, according to market indicators.

The Wells Fargo Hybrid and Preferred Securities Index was up 2 basis points at mid-morning. However, the U.S. iShares Preferred Stock ETF was down 5 bps.

Also, a trader remarked that there was “nothing going on” in terms of volume.

The trader did note that Global Indemnity Ltd.’s $120 million of 7.875% $25-par subordinated notes due 2047 – a deal that priced on Thursday – had freed from the syndicate early Monday.

He quoted the issue at $24.57 bid, $24.60 offered.

The deal was increased from the $75 million size originally announced and came to market at the tight end of talk for yield of 7.875% to 8%.

Morgan Stanley & Co. LLC, UBS Securities LLC and RBC Capital Markets were the joint bookrunners.

Meanwhile, a market source reported that New York Community Bancorp Inc.’s $515 million of 6.375% series A fixed-to-floating rate noncumulative perpetual preferreds are slated to hit the New York Stock Exchange on Wednesday.

The new ticker will be “NYCBPrA.” The issue is currently trading under a temporary ticker, “NYBCP.”

The deal came to market on March 10.

In early Monday trading, a trader saw the issue at $25.95 bid.

Goldman, Sachs & Co., Credit Suisse Securities LLC, BofA Merrill Lynch, Citigroup Global Markets Inc. and Sandler O’Neill + Partners LP were the bookrunners.

As for the upcoming calendar, it remained empty.

“It seems like it is not a bad time to start bringing deals, now that the bond market has a stabilized,” a trader said. While the trader had not yet heard of any new issues planned for the week, he added that “it wouldn’t surprise me” if the calendar started to build up again.

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